Question: please help! (round to 4 decimal places for each answer:)) Avicorp has a $13.8 million debt issue outstanding, with a 6.1% coupon rate. The debt

please help! (round to 4 decimal places for each answer:))
please help! (round to 4 decimal places for each answer:)) Avicorp has
a $13.8 million debt issue outstanding, with a 6.1% coupon rate. The
debt has semi-annual coupons, the next coupon is due in six months,

Avicorp has a $13.8 million debt issue outstanding, with a 6.1% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 83% of par a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual retum. b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield a. The cost of debt is% per year. (Round to four decimal places) Help me solve this MacBook Air A & 6 7 View an example Get more help. THE A @ # 3 4 Song 5 8 9 C 1 FW + " Homework: Chapter 13 Homework Part 1 of 2 Avicorp has a $13.8 million debt issue outstanding, with a 6.1% coupon rate. The debt has semi-annual coupons, the next coupon is due a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual retum. b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield. GEXED a. The cost of debt is % per year. (Round to four decimal places.) Part 1 of 2 Points: 0 of 1 par value. ual coupons, the next coupon is duo in six months, and the debt matures in five years. It is currently priced at 93% of

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